Vallianz Holdings expands geographical footprint

VALLIANZ Holdings has clinched Letters of Award and new charter contract wins worth US$64 million in Mexico, West Africa and the Asia-Pacific.

The group will supply vessels such as anchor handling tug supply (AHTS) vessels, platform supply vessels (PSV) and barges for periods of up to three years. The contracts are expected to contribute positively to the group's financial performance from its next financial year ending December 2015.

Chief executive officer of Vallianz Darren Yeo said: "These Letters of Award and new charter contracts mark our entry into Mexico and West Africa, and are in line with the group's strategy to diversify its geographical presence."

Separately, Vallianz disclosed that an earnings before interest, tax, depreciation and amortization (Ebitda) target has been established in relation to its proposed US$27.7 million acquisition of OER Holdings announced on Sept 30.

The purchase consideration for OER is to be satisfied by the issue of 250 million ordinary shares in the capital of Vallianz at 14 Singapore cents per share. Under a supplemental agreement, the vendor of OER has agreed to receive 125 million Vallianz shares or half of the 250 million consideration shares on completion of the acquisition.

The balance of Vallianz shares, subject to any anti-dilution adjustments, will be issued to the vendor only if the Ebitda of OER is not less than US$7.0 million for the 14-month period between Nov 1, 2014 and Dec 31, 2015.

OER is a supplier of professional crew and related hospitality services to the offshore industry.